In a graph of unemployment rates (on the horizontal axis)versus inflation rates (on the vertical axis),the short-run Phillips Curve is

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The short-run Phillips curve is downward sloping, indicating an inverse relationship between inflation and unemployment. As unemployment decreases, demand for labor increases, leading to wage increases and higher production costs for firms. As a result, firms would try to mitigate cost pressures by increasing prices, leading to inflationary pressures. Thus, there is a tradeoff between unemployment and inflation in the short run.

In a Graph of Unemployment Rates (On the Horizontal Axis)versus